Non-oil sector in Oman likely to witness a growth in 2023

PHOTO

Muscat: A steady growth is expected in the non-oil sector in the Sultanate of Oman during 2023. According to a report issued by the Institute of International Finance (IIF), the growth of the non-oil sector in the Sultanate of Oman is expected to reach 2.4% this year as compared to 2% last year.

The institute pointed out that the GCC countries are still resilient despite the global headwinds.

The institute said in a new report that the expected improvement in non-oil revenues and continued rationalization of spending may offset the decrease in the volume of oil exports to the Gulf Cooperation Council countries, which in turn leads to a decrease in the price of oil needed to balance the budget of the Gulf countries.

The institute indicated that the average oil price decreased from $100 a barrel in 2022 to $85 in 2023 and $80 in 2024.

The report added that the main downside risk to the oil price outlook is the expectation of weak global economic growth.

The IIF predicted that the total foreign assets of the GCC countries will reach about $3.3 trillion by the end of 2023, which is equivalent to 145% of the GDP